457(b) annual withdrawal

L1: 457(b) annual withdrawalI will retire this year at Age 56 from State Gov”t Service and will rollover my employee SERS contributions into a 457(b) plan administered by our Deferred Compensation outfit. Amount transferred will be about $94,000. I need an additional $450 net monthly to supplement my regular monthly annuity. Since the 10% early withdrawal penalty does not apply to 457”s, is there a limit on the amount of my annual 457 withdrawal? I also understand that monthly withdrawals are also permitted from a 457(b) account. Is this correct? For months I was researching traditional IRA rollovers and fees and 72(t) withdrawals and Federal Midterm rates to plug into a 72(t) calculator, but now I understand that all this is not necessary. Is this correct? Since I am under age 59.5 and wish to make annual withdrawals, is a 457(b) account still subject to a 72(t) calculation?2007-03-13 11:57, By: Dan, IP: [199.79.10.117]
L2: 457(b) annual withdrawalDan:
My suggestion is that you redirect your questions to your 457 plan administrator or the local rep who works that plan. He / she would be the most knowledgeable person to question since there are probably some “sponsor specific pecularities” that only the rep will know about. You should have received or can get new copies of the plan documents and prospectus (the boring stuff), and the supplemental information (the stuff that explains the boring stuff) that will answer all of your questions. I”m not trying to put you off but your questions are so focused on your plan”s specific details thatmy afforementioned suggestion should help you the most.
Good luck.
Jim2007-03-13 12:26, By: Jim, IP: [24.252.195.14]

L2: 457(b) annual withdrawal2007-03-13 15:20, By: Joel L. Frank, IP: [24.187.32.203]

L2: 457(b) annual withdrawalWhat I left out in my original post is that my 457(b) plan administrator (Great-West) had a group Q&A session that I missed in February, they will have another Q&A sessionin a few days on March 19th which I will definitely attend, and for the interim, they are not answering phone calls and emails from anyone because there is a large wave of retirees planning June 29, 2007 retirement and everyone has questions. Another thing, a co-worker returned from the February Q&A session and said that, if needed,they will establish two 457 accounts for a person, one deferred comp account for one”s annual leave/sick leave payout at retirement, which doesn”t get hit with the 10% penalty tax, and a second account for one”s SERS withdrawn retirement contributions, which is subject to the 10% penalty tax. Since Great-West is not answering any inquiries in between the enmass Q&A”s,I thought I could learn some things here. The big missing puzzle piece is the set-up on the second 457 account. Will it be set-up to allow 72(t) withdrawals, or is the second account being set-up just to keep track of the money to which the 10% penalty tax applies, and to keep it separate from the first account for leave payout? When I find this out, on March 19th, then I”ll know how to proceed.2007-03-15 07:02, By: Dan_G, IP: [199.79.10.117]

L2: 457(b) annual withdrawal2007-03-15 10:51, By: Joel, IP: [24.187.32.203]

L2: 457(b) annual withdrawalDan, I have deleted my prior posts. I am sorry for the confusion. You may rollover your SERS amount to your 457 Plan and take money out at will. No 72(t) SEPP is required because: (1) The 457 is already exempt from the 10 percent tax and (2) the rollover transaction was effectuated from a qualified plan during or after the year you turned age 55. This means the entire consolidated account is exempt from the 10 percent tax. Enjoy!
Joel2007-03-17 06:54, By: Joel, IP: [24.187.32.203]

L2: 457(b) annual withdrawalWhat you said, Joel,on March 17th is absolutely correct. I attended the 457 plan meeting at my workplace on March 19th and could finally get horse”s mouth answers to my questions, and the Great-West rep said that because I am over Age 55 and retiring this year, my SERS retirement plan contributions are exempt from the 10 percent penalty, and I can rollover my SERS lump sum into a 457 deferred comp account and withdraw whatever whenever if needed, or let it just sit ”n earn. Beautiful!2007-03-21 05:17, By: Dan, IP: [199.79.10.117]